Payable to Cash

Posted By: Midwest Banker

Payable to Cash - 12/08/05 02:59 PM

I'm obviously having a "duh" moment, but why can't a Cashier's Check be payable to cash (we have the remitter's name) if it is to be considered as good as cash and a stop payment cannot be made unless the item is lost, stolen or mutilated?

I know I should know this....
Posted By: John Burnett

Re: Payable to Cash - 12/08/05 03:21 PM

There is no reason you'll find in the UCC. But if the issuing financial institution specifies it won't issue a cashier's check to "Cash," that is enough for me. If the institution is signing the check, it gets to decide the rules.
Posted By: Midwest Banker

Re: Payable to Cash - 12/08/05 04:40 PM

Thanks John. I've never worked for an institution who would allow a check payable to cash and someone asked me the other day and I couldn't provide them with what I felt was a strong answer
Posted By: John Burnett

Re: Payable to Cash - 12/08/05 05:08 PM

It's about as strong as "Because I said so!" But I knew that was the final word when Mom or Dad used it when I was a kid.

They made the rules.
Posted By: rainman

Re: Payable to Cash - 12/10/05 12:29 AM

I think it's because a check made payable to cash is payable to "bearer" (i.e., as you said, it's cash) and most banks don't want to deal with the inevitable complaints that will come up when it's lost or stolen or whatever else and the bank won't issue a replacement check.